Though the ETF usually only adds new companies at quarterly reviews, it can buy firms with at least $100M of market capitalization as soon as five days after they start trading, the manager of the fund, Kathleen Smith, told Bloomberg.
IPO already owns Lyft shares.
“If you’re trying to trade names like Uber, it’s a lot safer to own a basket of them since it can be very volatile to own them individually,” Smith said. “It’s a way for investors to get exposure without the emotional ride.”
Previously: Uber underwriters used naked short tactic - CNBC (May 14)
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